Editorial The new economic modeling - Preparing Albania for future generations Prof. Asoc. Dr. Elvin MEKA

The new economic modeling Preparing Albania for future generations EDITORIAL www.aab.al

The actually discussed remodeling for national economy really needs a better understanding of the special role, each capital may and must play, within their contribution to the economic growth. Additionally, it requires finding ways how to energize the above cited capitals in a way that empowering one of them could reciprocally empower and stimulate others and vice-versa.

Prof. Asoc. Dr. Elvin MEKA 1 Editor-in-Chief

Almost three decades ago Albania entered the highway of capitalism and market economy, by leaving behind the centralized communist economy, which at the end brought it on the brink of existence and clinical death. In this respect, Albania has made its choice: it chose mostly the classical and liberal capitalism. Back in early nineties, it started with numerous socially and economically painful reforms, to transform its economy into e typical capitalist one, and today, after those deep political, economic and social transition and transformation, Albania and its economy has arrived at the point that it needs reflection and a new approach, towards its new modelling.

In practical terms, in case of Albania, we may only talk about new economic modelling, rather than thinking about, inventing, or picking a brand-new economic model. The new economic modelling is not a matter of choosing between liberal and political capitalism; rather it has to do with decisions to ensure an optimal and new rearrangement of the six capitals, within the economic system, which are: business, infrastructure, human, social, intellectual and natural capital. The current set of economic model, and the above six capitals arrangement setup, which Albania has used for many years in a row, has enabled it to score a seamless period of time of positive economic growth, but not quite enough to generate a sizeable and sustainable wellbeing for all citizens. Put it simple, this economic setup and format has not produced, so far, a sustainable model for economic development, and this needs to change.

The actually discussed remodeling for national economy really needs a better understanding of the special role, each capital may and must play, within their contribution to the economic growth. Additionally, it requires finding ways how to energize the above cited capitals, in a way that empowering one of them could reciprocally empower and stimulate others and vice-versa. Surely, in this complex landscape, different stakeholders have a role to play, but undoubtedly the government must play the biggest part, as the development and advancement of the majority of capitals depend, in a way or another, in the way how it sets development priorities and how effective and efficient, its investments are. In this framework, when the government set priorities according to the new economic modeling, it must tackle complex issues, such as: continuously decreasing demographics, low productivity, unskilled and ill-trained labor force, simplistic industrialized economy, underdeveloped agriculture and basic agri-industry, sizeable informal economy, modest IT infrastructure, rudimentary and traditional financial markets, etc., along with drafting viable longterm investment strategies and finding ways to pay for them, without significant cost and burden to state budget, in the long-run. Put it simple, such economic remodeling requires the government to build vision and think ahead and on a long-term basis.

To close, Albania needs to develop an economy that produces wealth and well-being for masses, eases inequality, promotes competition and works in a healthy business environment, and above all, an economy that creates a real economic added value for the whole society, and not a mere mechanical value for a part of it!

1 Dean of Faculty of Economy, Business & Development, European University of Tirana, UET.